Search
 

Analysts Doubt Home Depot Buy

NEW YORK CITY-If the $10-billion deal took place it's unlikely that it would lead to a store sell off, analysts say.

By Debra Hazel | Updated on December 04, 2006

NEW YORK CITY–Published reports that an investment group is looking to acquire Home Depot in a $100 billion leveraged buyout are likely nothing more than speculation, but even if the takeover were to take place, don’t expect a massive closing of stores, observers say.

On Dec. 1, the New York Post and CNBC reported that buyout firms Kohlberg Kravis Roberts and Co. and Texas Pacific Group were exploring a takeover. Home Depot chairman Robert Nardelli was quick to deny any interest in being acquired, and informed the SEC on Friday that it had not participated in any talks. But even if a deal were to take place, the new owners would likely continue to operate the second largest retailer in the United States largely as is – but with massively more debt.

“Home Depot has a lot of real estate that [new owners] might sell off, or they might do sale/leasebacks,” said Howard Davidowitz, chairman of New York City-based Davidowitz & Associates, which provides consulting and investment bank services to retailers. “But fundamentally, that might not affect the core business.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.